Cost of Living: Knoxville, TN vs Ann Arbor, MI (2026)

Knoxville

Tennessee
74
VS

Ann Arbor

Michigan
121

Knoxville is 39% cheaper than Ann Arbor.

$1,116/mo ↓ 28%
Median Rent
$1,552/mo ↑ 39%
$50,994/yr ↓ 37%
Median Income
$81,089/yr ↑ 59%
$214,000 ↓ 51%
Home Value
$435,100 ↑ 103%
$1,075/mo ↓ 34%
Owner Costs
$1,638/mo ↑ 52%
193,721
Population
121,179

Tax Comparison

0%
Income Tax
4.25%
7.0%
State Sales Tax
6.0%
0.64%
Property Tax
1.38%

Affordability

26.3%
rent-to-income
Affordability
23.0%
rent-to-income

Detailed Comparison

When comparing Knoxville, TN and Ann Arbor, MI, the overall cost of living indices are 74 and 121 respectively (national median = 100). Rent is $436/month cheaper in Knoxville, saving renters about $5,232/year.

Median household income is $30,095/year higher in Ann Arbor. Home values also differ significantly — the median in Knoxville is $214,000 compared to $435,100 in Ann Arbor.

Tennessee has no state income tax, giving Knoxville residents a significant tax advantage over Michigan's 4.25% rate.

Frequently Asked Questions

Knoxville vs Ann Arbor — common questions

Is Knoxville or Ann Arbor cheaper to live in?
Based on our cost index, Knoxville is cheaper to live in with an index of 74 compared to 121 (US average = 100).
What is the rent difference between Knoxville and Ann Arbor?
Median rent in Knoxville is $1,116/month and in Ann Arbor it's $1,552/month — a difference of $436/month.
Which city has higher income, Knoxville or Ann Arbor?
Median household income is $50,994 in Knoxville and $81,089 in Ann Arbor. Median household income is $30,095/year higher in Ann Arbor.
How do taxes compare between Tennessee and Michigan?
Tennessee has 0% income tax, 7.0% sales tax, and 0.64% property tax. Michigan has 4.25% income tax, 6.0% sales tax, and 1.38% property tax.
Should I move to Knoxville or Ann Arbor?
It depends on your priorities. Knoxville has a cost index of 74 with median rent of $1,116/mo, while Ann Arbor has a cost index of 121 with rent of $1,552/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Knoxville details → View Ann Arbor details →

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